The firm which runs rail services to Hemel, Berkhamsted and Tring has been given a two-month extension to its franchise.
London Midland’s contract will now run until December 2017, and may be further extended until February.
The current contract was due to come to an end this October 2017.
London Midland managing director Patrick Verwer said: “This announcement means we can continue to build on the successes of the last five years that have made this an international award-winning franchise.
“Our focus will remain on delivering the best possible service to our passengers, each day and every day. This approach is already producing high levels of customer satisfaction. During the months ahead we will continue to work with the DfT and all our stakeholders to ensure a smooth transition for the awarding of the new, long-term, franchise.”
London Midland has been operating train services along thwe West Coast Main Line between London and Liverpool, and across the West Midlands, since 2007.